DOOOOOOOOOOM: Is the UK screwed?

[Robinho]

Read this tutorial and discussion before sounding off on things about which you evidently know next to nothing

I'm sure you can find a video that tells you god created all the animals in his workshop too.

The deflation spiral theory relies on the assumption that people will stop spending indefinitely because they perceive prices will be lower in the future. This assumption is of course, complete bollocks. Otherwise, people would stop buying many of today's products such as computers.

The myth was created by Keynesians and governments as an excuse to steal your money via inflation and continue to buy votes with that money.

[lilelvis2000]

I smell another round of QE!

Bring on the bond buying by the government's left arm while the right arm sells them. And not to worry...soon China will come knocking for all the remaining gold in our safe.

[lilelvis2000]

I'm sure you can find a video that tells you god created all the animals in his workshop too.

The deflation spiral theory relies on the assumption that people will stop spending indefinitely because they perceive prices will be lower in the future. This assumption is of course, complete bollocks. Otherwise, people would stop buying many of today's products such as computers.

The myth was created by Keynesians and governments as an excuse to steal your money via inflation and continue to buy votes with that money.

Fair point. though I think deflation does apply to certain sectors such as Cars, Houses. In other words larger durable goods which one can usually wait it out before buying. Other stuff you just need no matter the price?

[rambaugh]

You have the idea that all we need to do is start blowing up the bubble again. This is not the case.

Bollocks, consumer spending has to be just enough to bring the economy back in to equilibrium. Economists and politicians have tools and can use policies to keep the economy stable. Having said that, you do need to apply the right policies in order to maintain an economy and doing so is as much of an art as it is a science. If one had a crystal ball and could see in to the future we would always avoid recessions and bubbles.

[minestrone]

"consumer confidence", "high street sales"

[Robinho]

Bollocks, consumer spending has to be just enough to bring the economy back in to equilibrium.

That's fine if consumption is derived from money that has been earnt and not borrowed. Consumption spending on borrowed money is leading us down the path that got us here in the first place.

Economists and politicians have tools and can use policies to keep the economy stable.

No they f**king can't

Politicians only have the power to ruin the economy and create business cycles, as we have just witnessed.

Having said that, you do need to apply the right policies in order to maintain an economy and doing so is as much of an art as it is a science. If one had a crystal ball and could see in to the future we would always avoid recessions and bubbles.

Governments, central banks and fiat currencies CAUSE business cycles and boom/bust, by distorting pricing signals that tell businesses when to invest and when to hold off.

Politicians love booms because it can keep them in office until the next election.

[minestrone]

Robby, every once in a while you make sense but when you scatter gun your thoughts on everything to the internet I suppose you get a few right in the end. 10% maybe.

[Robinho]

Robby, every once in a while you make sense but when you scatter gun your thoughts on everything to the internet I suppose you get a few right in the end. 10% maybe.

If i was wrong 90% of the time people would be able to point out to me why i am wrong on 90% of the occasions.

The reality is people are only able to do this 0% of the time, though they can throw baseless insults 100% of the time.

As you have so wonderfully demonstrated.

[minestrone]

If i was wrong 90% of the time people would be able to point out to me why i am wrong on 90% of the occasions.

The reality is people are only able to do this 0% of the time, though they can throw baseless insults 100% of the time.

As you have so wonderfully demonstrated.

I man I.

[Robinho]

I man I.

'I' man, 'I'.